Ok, but that’s if they can’t pay it back, which is sort of saying if this is a scam then we are screwed which we would be with or without this financing. More interesting to me is the term that says the second instalment of loan won’t be released unless they make 250k in sales ( or grant) in next 150 days. Basically I think we should know if this is a scam in next 150 days. I’m hoping this means the company actually intend to grow and sell product in that timescale, whether they are capable of doin this is another thing.
Dingodog, while I don’t disagree that CLNs can be pretty destructive, the RNS does say that the conversion will be at a premium to the SP at that time, so while that SP may be low the conversion price should be higher - or am I reading this wrong?
At least I actually held some shares. Plus have never been activity involved in trying to cheat naive PIs.
Don’t know how some people live with themselves.
Of course I’ve sold my shares, the company is crooked and I’m trying to warn people by doing the maths for them. Instead of lying about it.
You clearly know nothing about finance. They are getting their money back now when they could make more down the road if they held.
Why are they doing that? Because the risk of them losing their money by holding is too high.
And just who do you think the convert holders are?
I would advise you to sell now, you are out of your depth.
Stas, unfortunately posts like this make it obvious what your game is. I’m sure you understand the maths, but to spell it out;
The convert buyer gets a 22% discount so spends 780k for 1m notional of bond.
If they convert the 1m notional of bond at 16.75p per share they get 5.97m shares.
If they sell those 5.97m shares at 13p they get their 780k back.
Frankly for anyone buying in here for the first time please be aware there are a lot of toxic posters on this board. You can guess who is employing them.
You can also guess who bought the converts. If they held them to maturity they get a massive premium back, but they are not choosing to do this. This is because the risk of default on these converts is so high they will take the small gains now.
If they continue to convert when the SP is under 13p please get really worried.
The owners of the convert will have a lot more information than you. You can guess where they will be getting that from.
All the best.
Garyn, great post, everyone should read it and the financing RNS. Then should think why are they converting instead of waiting for the massive premium on redemption. Perhaps they think it won’t get there? Anyway they can sell this down to 13 and still be in profit.
Unfortunately this was bound to happen from the moment the terms of the financing were disclosed, see my posts that weekend. The paid rampers here have a lot to answer for, they intentionally drown out any actual discussion.
Yes that’s how I read it too. BEN is benifiting from the disruption to other miners in the local states and putting on more trains to plug the gap. Obviously not politically correct to spell that out in RNS that BEN benefitting from a natural disaster hurting a lot of people, but that’s how I read it. Bought more BEN on the bell at 34.25.
If you think there is $4.7m cash sitting in a ring fenced account ready to be returned to CUDA then you are right. Knowing Art I just doubt that very much, given the low level of cash at year end and rate of cash burn, I suspect it has been used to fund the operating needs of the business, but I could be wrong.
Not sure that is right, we have to pay over the USD 18m in cash, and I’m guessing that all comes from the loan. Unless the cash from the receivable has been ring fenced somewhere. If it’s just been spent already within the business we will use nearly all the loan. Fact is we don’t know the cash balance at the moment, though I suspect pretty low.
Hi Bladderman, my theory on that was that he bought them with a kick back from the wonga boys, so he could prop the SP up for the Wonga boys to have another go at it and give him another kickback. Hopefully the cycle doesn’t carry on for ever…